Correlation Between Suzhou Xingye and Hubeiyichang Transportation
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By analyzing existing cross correlation between Suzhou Xingye Material and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Suzhou Xingye and Hubeiyichang Transportation and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Suzhou Xingye with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Hubeiyichang Transportation.
Diversification Opportunities for Suzhou Xingye and Hubeiyichang Transportation
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Hubeiyichang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and Suzhou Xingye is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Suzhou Xingye Material are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Suzhou Xingye i.e., Suzhou Xingye and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Hubeiyichang Transportation
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to under-perform the Hubeiyichang Transportation. In addition to that, Suzhou Xingye is 1.76 times more volatile than Hubeiyichang Transportation Group. It trades about 0.0 of its total potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.01 per unit of volatility. If you would invest 533.00 in Hubeiyichang Transportation Group on August 31, 2024 and sell it today you would earn a total of 3.00 from holding Hubeiyichang Transportation Group or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Suzhou Xingye Material |
| Hubeiyichang Transportation |
Suzhou Xingye and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Hubeiyichang Transportation
The main advantage of trading using opposite Suzhou Xingye and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye position performs unexpectedly, Hubeiyichang Transportation can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Suzhou Xingye vs. Guangdong Jingyi Metal | Suzhou Xingye vs. Jiangsu Financial Leasing | Suzhou Xingye vs. Qingdao Choho Industrial | Suzhou Xingye vs. ZYF Lopsking Aluminum |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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